On-Site Announces it Earned $.08 Per Share in Second Quarter: Company Achieved Record Quarterly and Six Month Revenue
ARLINGTON, Va., July 17 /PRNewswire/ -- On-Site Sourcing (Nasdaq: ONSS - news) today reported its financial results for the quarter ended June 30, 2001.
The Company announced that revenues for the second quarter of fiscal 2001 were nearly $10.4 million, an increase of 19% compared to revenues of $8.68 million for the same quarter of last year.
Earnings from operations increased 41% from $797,258 in the second quarter of 2000 to nearly $1,124,885 in this year's second quarter. Net income decreased 6% from $446,040 or $0.08 per diluted share, in the 2000 second quarter to $420,233, or $0.08 per diluted share in the same quarter of 2001. The fiscal 2001 second quarter's financial results did include a one time charge of $240,000, related to severance payments to a departed executive, and $143,000 (Pre-tax) loss on the building purchased in the fourth quarter of 2000.
For the first six months of 2001, revenues totaled $19.8 million compared to $18.4 million in the first half of 2000. This represents an increase of 7%. Earnings from operations for the first half of this year were 1,892,188 million versus 2,579,487 in the same period last year. Net income was $662,413, or $0.13 per diluted share, for the first half of 2001 compared to $1,430,960, or $.26 per diluted share, for the 2000 first half.
According to Christopher Weiler, chief executive officer, ``With six of the last seven quarters posting profitable results, we believe the momentum will continue through the rest of the year. Our second quarter's performance demonstrates that we have a business model that is delivering strong results. With the completion of a strong second quarter and solid first six months, we're now entering our weakest quarter historically with a good back log of work,'' he continues. ``Our goals for the remainder of the year are the following:''
* Accelerate revenue growth through adding account executives in each
market and aggressively attacking the legal, federal, and commercial
imaging services sectors.
* Build our data repository services for the legal market, as well as
looking to expand our imaging services to either the mid-west or west
coast during the third quarter.
* Recruit high quality individuals to serve on our Board of Directors
* Improve our balance sheet, as well as gross margin percentages
* Move into new building in Q4 (without decrease in operational
effectiveness)
Weiler added, ``these investments will have an impact on our quarterly earnings, and we do not necessarily expect to generate sequential quarterly earnings growth. We do expect to produce top-line growth and even greater earnings growth, as we continue to expand our higher-margin businesses.''
The Company will host a conference call for investors on Wednesday, July 26, 2001, at 1 p.m. Eastern Daylight Time.
ON-SITE SOURCING, INC.
STATEMENTS OF OPERATIONS
Unaudited Unaudited
Three Months Ended Six Months Ended
June 30, June 30, June 30, June 30,
2001 2000 2001 2000
Revenue $10,332,382 $8,681,120 $19,782,031 $18,453,485
Costs and expenses
Cost of sales 6,653,651 5,793,342 13,016,616 11,642,254
3,678,731 2,887,778 6,765,415 6,811,231
Selling expense 901,073 984,402 1,798,450 2,045,325
Administrative
expense 1,652,773 1,106,118 3,074,777 2,186,419
2,553,846 2,090,520 4,873,227 4,231,744
Earnings from
operations 1,124,885 797,258 1,892,188 2,579,487
Other income
(expense)
Other income 81,211 4,304 153,901 6,639
Other expense (441,763) (60,722) (839,576) (208,366)
(360,552) (56,418) (685,675) (201,727)
Earnings (Loss)
before income taxes 764,333 740,840 1,206,513 2,377,760
Income tax (benefit)
expense 344,100 294,800 544,100 946,800
Net (Loss) Earnings $420,233 $446,040 $662,413 $1,430,960
Basic earnings (loss)
per common share $0.09 $0.09 $0.13 $0.30
4,943,625 4,809,100 4,943,625 4,842,125
Diluted earnings
per share $0.08 $0.08 $0.13 $0.26
4,990,532 5,519,255 4,978,621 5,462,172
See notes to financial statements
This press release includes ``forward-looking statements'' within the meaning of the federal securities laws, which involve uncertainties and risks. These include statements regarding events or developments that the Company expects or anticipates will occur in the future, such as statements about the Company's strategies to improve operating performance. A number of risks and uncertainties could cause actual results, events and developments to differ from expectations, including the effectiveness of programs to increase revenues and cash flow and to reduce costs, and the actions of competitors. Please refer to the Company's 2000 Annual Report on Form 10-K and its other filings with the Securities and Exchange Commission for a complete discussion of these and other important factors that could cause results to differ materially from those projected by these forward-looking statements. |
